Half Year Report 2015/16

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN INCOME & GROWTH INVESTMENT TRUST PLC

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS ENDED31ST JULY 2015

Chairman's Statement

Your Company continued to make progress in the first half of the financial year. The net asset value (including dividends paid) grew by 4.6%, which compares well with the FTSE 350 return of 2.6%.

The market's return was modest, but at least positive. Company profitability has supported a steady flow of improving dividends, share buybacks, and merger activity. Central banks continued to provide a positive investing environment by keeping rates low (in the US and the UK) and by pumping more liquidity into the global financial system (in Japan and Europe).

These positives were sufficient to outweigh the multiple risks that drew the attention of investors in the first half. You will hardly need reminding of the twists and turns of the Greek crisis that very nearly triggered the unraveling of the Euro, with unpredictable consequences. China appeared to be suffering from a deflating bubble in property, which then spread to shares towards the end of the quarter. The ramifications for growth in emerging markets more generally were transmitted to the rest of the world via weak commodity prices and weak emerging market currencies. This has helped to keep inflation low in the developed countries.

We remained fully invested during this period, with gearing of £20 million. Over 85% of our total assets remained in UK and overseas equities, with the remainder in a combination of diversifying financial assets. The full attribution of performance is explained in the Managers' Report.

At 75 months, this has been the longest bull market since the War. There are signs of bubble conditions in some housing markets around the world, in the biotech sector in equity markets, and in government bond markets. Equities are no longer cheap in absolute terms, only relative to overvalued bond markets.

Since the quarter end, equity markets have fallen substantially. Concerns about the outlook for global economic growth have intensified following a devaluation of the Chinese currency. World trade growth has slowed further. The focus has shifted to the accumulation of debt in emerging countries since the global financial crisis, which makes many countries look vulnerable to a tightening in US rates or a Chinese slowdown.

This is no ordinary cycle, however. Central banks have never before targeted asset prices so overtly, or intervened in financial systems so aggressively. The expected course of global monetary policy will be the single most important determinant of returns for this Company between now and the winding-up in November 2016.

The Board would like to thank those shareholders who have written to us with suggestions about what we offer as a roll-over option in November 2016. It is still too early to know what market conditions will be, but the Board continues to discuss all possibilities and intends to give greater detail at the time of the year-end results.

Karl Sternberg

Chairman

30th September 2015

Investment Managers' Report

Market Review

Global stock markets began the six months under review on a positive footing, but succumbed to uncertainty towards the end of the period. Improving economic growth, stimulatory central bank policy and continued corporate profit growth underpinned performance in developed markets. The Company's benchmark delivered 2.6%, similar to the comparative global indices. Before concerns about economic growth became more pronounced, the benchmark index had been up 9%.

Monetary policy continued to drive the mood of developed markets. Both the European Central Bank (ECB) and the Bank of Japan continued to create new money by buying government bonds, whilst speculation mounted about the timing of interest rate rises in the UK and the US. The ECB is spending €60 billion each month on government bonds, which has kept long-term interest rates low and contributed towards some improvement in European growth and a strong recovery in corporate earnings. The continuing Greek crisis was damaging for confidence, but did not derail the gradual improvement in European economies. As our single largest overseas market this is important for UK companies.

In the UK, investors brought forward expectations for the first interest rate rise from the Bank of England to early 2016 as a result of increased wage pressure and a strengthening domestic economy. A surprise Conservative Party victory in May's general election was viewed as positive for markets. But whatever happens to UK rates will depend to a large extent on the Federal Reserve's choices. Investors began to anticipate some increase in US rates this Autumn in response to a tightening labour market. The Fed sought to manage market nerves about the impact of policy change, stressing that the decision would be data dependent and that the path of interest rate rises would be gradual, but the lack of certainty has limited the gains for US equities over the period.

A source of deepening investor concern about growth has been emerging economies. The prospect of higher interest rates in the US focused attention on the large increase in debt in emerging economies since 2007, and whether this could be funded in future. In particular, investors fretted about China, where the economy slowed sharply, and the stock market bubble of the last two years burst in June

(Source for all market returns is FactSet, as at 31 July 2015, total return net in sterling terms)

Portfolio Review

The Trust's portfolio is managed to the objective 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. The Company's overall portfolio return of +4.6% outperformed the benchmark's return of +2.6% over the six months to the end of July 2015. There was positive absolute performance from all underlying strategies. Our UK equity holdings which make up our biggest allocation performed well during the period outperforming the FTSE 350 index by +2.8%.

As detailed in the in the box on the left the UK equity element of the portfolio materially outperformed the benchmark in the six month period. ITV was the largest single positive contributor to returns. The broadcaster delivered a strong set of results and announced a further special dividend. The fund's material position in UK house builders such as Berkeley Group, Taylor Wimpey and Galliford Try was also beneficial as trading remains strong and supportive government policy is set to continue following the Conservative election victory. The fund's holding in Rio Tinto, which produces iron ore, hurt performance as weakness in commodity prices led the stock down despite its high dividend yield which we believed should provide considerable valuation support.

During the review our asset allocation has remained unchanged, which includes a significant allocation to UK equities and the JPM Multi-Asset Income Fund. It remains important that we have diversified sources of income and exposure to attractive asset classes to help meet the Fund's dual objective.

Some 6% of our total assets are invested in the JPM Europe Strategic Dividend Fund. It delivered positive absolute performance in sterling terms during the first six months. The portfolio management team continue to see material income opportunities in European companies. The weaker euro, low oil price, money supply and improving credit conditions continue to act as strong tailwinds to European earnings, as evidenced in the second quarter earnings season and recent European economic releases.

The JPM Global High Yield Bond Fund also produced a positive return and outperformed its benchmark. Over the period, the Fund has been overweight the technology, gaming and healthcare sectors which were seen to be attractively valued. Weakness in commodity prices led the fund to have an underweight positioning in the energy sector as well as other sectors with operations linked to materials such as oil, iron ore and copper.

Outlook

Volatility in markets has risen as the FOMC rate decision approaches and this in combination with low levels of global economic growth means that we have less conviction in our core view than we had six months ago. What this means in practice, is that while we continue to believe that the gradual healing of developed economies will more than offset the weakness in emerging economies (leading to positive returns for equities and corporate bonds), the range of potential outcomes around this core case is more disperse.

James Elliot

Katy Thorneycroft

Sarah Emly

John Baker

Investment Managers

30th September 2015

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 and strategy; market; accounting, legal and regulatory; corporate governance and shareholder relations; operational; and financial. Information on each of these areas is given in the Business Review within the Annual Report and Accounts for the year ended 31st January 2015.

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, risk management policies, capital management policies and procedures, nature of the portfolio and expenditure projections, that 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 pertaining 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 financial report. For these reasons, they consider there is sufficient 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 year financial report has been prepared in accordance with the Accounting Standards Board's Statement 'Half Year Financial Reports'; 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

Karl Sternberg

Chairman

30th September 2015

Statement of Comprehensive Income

for the six months ended 31st July 2015

1Dividends paid during the six months ended 31st July 2015 of 2.3p (2014: 2.2p) per Income share, amounting to £1,420,000 (2014: £1,358,000).

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

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

Statement of Financial Position

at 31st July 2015

Cash Flow Statement

for the six months ended 31st July 2015

Notes to the Financial Statements

for the six months ended 31st July 2015

1. Financial statements

The information contained within the 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 January 2015 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, 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, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' of the United Kingdom Generally Accepted Accounting Practice ('UK GAAP') 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 November 2014.

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 31st July 2015.

As a result of the first time adoption of FRS 102 and the revised SORP, comparative numbers and presentational formats have been restated where required.

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 January 2015 with the following exceptions and amendments :

Finance costs

Finance costs are accounted for on an accruals basis using the effective interest method and in accordance with the provisions of FRS 102.

Dividends paid to Income shareholders are classified as finance costs because the Income shares are classified in the accounts as liabilities in accordance with FRS 102. Dividends payable are included in the accounts in the year in which the Company enters into an obligation to make the dividend payment. Dividends payable are allocated wholly to revenue as to allocate any portion to capital would affect the rights and benefits attributable to the Capital shareholders.

In accordance with FRS 102, the fourth quarterly and special dividends are included in finance costs in the year in which the Company enters into an obligation to pay them.

Financial instruments

Cash and cash equivalents may comprise cash (including demand deposits which are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value) as well as cash equivalents (in accordance with the requirements of the Alternative Investment Fund Managers Directive regulations, investments are regarded as cash equivalents if they meet all of the following criteria; highly liquid investments held in the sub-fund's base currency that are readily convertible to a known amount of cash, are subject to an insignificant risk of change in value and provide a return no greater than the rate of a three-month high quality government bond).

The Company uses an interest rate swap to hedge the cash flow risk arising from interest rate fluctuations. The swap is classified as held at fair value through profit or loss and has been designated as a highly effective cash flow hedge in accordance with the provisions of FRS 102. Gains or losses arising on the fair value of the cash flow hedge during the year are recognised through the Statement of Changes in Equity and are accounted for in capital reserves.

In accordance with FRS 102, the Income share class is classified in the accounts as a liability due to the rights and obligations attached to that share class.

Foreign currency

In accordance with FRS 102, the Company is required to identify its functional currency, being the currency of the primary economic environment in which the Company operates. The Board, having regard to the currency of the Company's share capital and the predominant currency in which its shareholders operate, has determined that sterling is the functional currency. Sterling is also the currency in which the accounts are presented.

Taxation

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

Deferred tax is accounted for in accordance with FRS 102.

Only the relevant section of the applicable policies from the last year end accounts which have changed as a result of the application of the 2014 AIC SORP and FRS 102 have been reproduced above - all other aspects of those policies remain the same. The impact of the changes is substantially in relation to presentational, disclosure and non-quantifiable aspects.

3. Dividends on Income shares

A second quarterly dividend of 1.20p (2015: 1.10p) per Income share, amounting to £741,000 (2014: £679,000) has been declared payable in respect of the six months ended 31st July 2015. It will be paid on 25th September 2015 to shareholders on the register at the close of business on the 28th August 2015.

4. Return per class of share

Return per Income share is based on the following:

Return per Capital share is based on the following:

5. Net asset value per class of share

Net asset value per Income share is based on the following:

Net asset value per Capital share is based on the following:

6. Reconciliation of total return on ordinary activities before finance costs and taxation to net cash inflow from operating activities

7. Fair valuation of investments

The fair value hierarchy analysis for investments held at fair value at the period end is as follows:

1Swap contract.

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 ASSET MANAGEMENT

30th September 2015

For further information please contact:

Divya Amin

For and on behalf of

JPMorgan Funds Limited, Secretary

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.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.