Half-year Report

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN EUROPEAN INVESTMENT TRUST PLC

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS ENDED30TH SEPTEMBER 2019

Legal Entity Identifier: 549300D8SPJFHBDGXS57

Information disclosed in accordance with the DTR 4.2.2

Chairman's Statement

In this six month reporting period to 30th September 2019, the Company delivered positive returns to shareholders on both its Growth and Income shares. More details on the performance and dividends of each of the Company's share classes and the different ways to measure performance are provided below.

Growth Portfolio

Return to shareholders and return on net assets

The return to shareholders for the Company's Growth shares was +8.2%. This measurement of performance takes into account share price movements and income received by way of dividend. It is the industry norm and assumes that the dividend has been reinvested.

The return on net assets (debt at par value) with dividends reinvested for the Company's Growth shares was +7.9%.

The return on net assets is measured by net asset value movements and this can be looked at in different ways depending on the accounting treatment of the Company's private placement, which is a long term debt. The accounting policy of the Company, which is in line with accounting standards, recognises 'debt at par value' and amortises the debt principal. Market participants also want to know the impact of recognising 'debt at fair value', so performance is quoted for both bases. Further details on these calculations are included in the Glossary of Terms and Alternative Performance Measures on page 39 of the Company's Half Year Report.

The return on net asset value (debt at fair value) with dividends reinvested for the Company's Growth shares was +6.8%. The annual figure for this latter return is detailed in the Company's Annual Report.

For this period under review, both returns to shareholders and on net assets are below the Company's benchmark index, the MSCI Europe ex UK Index total return in sterling terms (the 'Index'), which increased by 10.2%. Looking longer term, the return on net assets over five and ten year comfortably outperformed the index.

The discount at which the Growth shares were trading below the prevailing net asset value did not change significantly since the financial year end but remained high, reflecting continuing negative market sentiment towards Europe.

Dividends

For the Company's Growth shares, the Board's aim is that annual dividend payments are sufficient to maintain the Company's investment trust status. Revenue return per share on the Growth portfolio for the six months to 30th September 2019 (calculated by reference to the average number of shares in issue over the period) amounted to 6.97 pence per share (2018: 8.01 pence per share). A first interim dividend of 4.85 pence per share (2018: 4.85 pence per share) was paid on 11th October 2019. The timing of the dividend declarations for the Growth second interim is expected to continue to be made ahead of the annual conversion opportunity in March each year.

Income Portfolio

Return to shareholders and return on net assets

The return to shareholders with dividends reinvested for the Company's Income shares was +5.4%.

The return on net assets (debt at par value) with dividends reinvested for the Company's Income shares was +7.2%.

As with the growth portfolio, for this period under review, both returns to shareholders and on net assets were below the Company's benchmark index. Looking longer term, the return on net assets over three, five and ten years comfortably outperformed the benchmark.

The return on net asset value (debt at fair value) with dividends reinvested for the Company's Income shares was +6.3%. The annual figures for this latter return is detailed in the Company's Annual Report.

As with the growth portfolio, the discount did not change significantly since the financial year end for the same reason.

Dividends

For the Company's Income shares, the Board's aim is to provide a regular stream of dividend income on a quarterly basis, subject to the availability of distributable reserves. Revenue return per share on the Income portfolio for the half year (again, calculated by reference to the average number of shares in issue over the period) amounted to 4.95 pence per share (2018: 5.01 pence per share). The first quarterly interim dividend of 1.40 pence per share (2018: 1.25 pence per share) was paid on 19th July 2019 and a second quarterly interim dividend also of 1.40 pence per share (2018: 1.25 pence per share) was paid on 11th October 2019. A third quarterly interim dividend of 1.40 pence per share (2018: 1.25 pence per share) was declared on 19th November 2019 for payment on 10th January 2020.

The timing of the dividend declarations for the Income fourth interim is expected to continue to be made ahead of the annual conversion opportunity in March each year.

In their Report below, the Investment Managers comment on some of the factors underlying the performance of the two portfolios over the Company's six month period, as well as commenting on the economic and market background.

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 2019 the Growth portfolio was 8.9% geared and the Income portfolio was 5.3% geared. These levels of gearing as quoted in this Half Year Report and Financial Statements are before the application of derivatives, such as futures, which can be used by the Investment Managers to either increase or decrease the effective rate of the Company's gearing, according to market conditions. The Company's net gearing including derivatives is included with the Company's daily published net asset value.

Conversions

Shareholders in either of the two Company's share classes are able to convert some or all of their shares into shares of the other class without such disposal being treated as a disposal for capital gains purposes. The Company's next share conversion will be in March 2020 and details of the process will be posted on the Company's website in late January 2020.

Share Repurchases

The Board remains of the view that it is important to seek to address imbalances in the supply of and demand for the Company's shares and to thereby minimise the volatility and absolute level of the discount to net asset value at which the Company's shares currently trade. The Board does not wish to see the discounts widen beyond 10% (using the cum-income NAV) on an ongoing basis. The precise level and timing of repurchases pursuant to this policy depend upon prevailing market conditions. Over the six months under review the discount levels have averaged 12.0% for the Growth shares and 11.2% for the Income Shares (both at fair value and on a cum-income NAV basis). Accordingly, over the six month period the Company repurchased a total of 2,364,227 Growth shares and 338,568 Income shares.

Transfer of Reserves between the Growth and Income Portfolios

As in the previous year, the Board has exercised its power to approve transfers of retained revenue reserves from JETG to JETI in exchange for the equivalent amount of capital reserves from JETI to JETG. £1.348 million was transferred to JETI in exchange for the equivalent amount of capital reserves from JETI to JETG, being the amount of JETG's retained revenue reserve as at 31st March 2019, after payment on 5th April 2019 of the JETG 4.00p dividend. This transfer is reflected in this Half Year Report and Financial Statements.

Board of Directors

As referred to in my Chairman's Statement of the Company's Annual Report and Financial Statements to 31st March 2019, the Board was pleased to announce that Rita Dhut was appointed to the Board on 4th June 2019. Rita Dhut has 18 years' asset management experience in UK and continental European equities with roles including Director of European Equities at M&G and Head of Pan European Equity Value Investing at Aviva Investors.

Outlook

The Board and Managers are mindful of the economic and political uncertainties of investing in Europe which currently include concerns about future economic growth the influence of populist parties and Brexit, together with ongoing trade tensions between the US and China, which impacts global stock markets. However, we think that, within the Company's risk parameters and investment methodology, positive returns are achievable over the medium and longer term.

For and on behalf of the Board

Josephine Dixon

Chairman

29th November 2019

INVESTMENT MANAGERS' REPORT

Review

The Company's half year to 30th September 2019, saw markets in Europe ex UK trade modestly higher in sterling terms. In many ways the investment background deteriorated: growth expectations were downgraded everywhere as trade suffered from the continuing trade tensions between the US and China. The slowdown was particularly acute in manufacturing, with confidence indicators reaching recessionary levels. The manufacturing sector is, though, less significant in developed markets, and services remained fairly buoyant, boosted by continued rises in overall employment and contained inflation helping increases in real incomes.

Central Banks have become unequivocally dovish, with the US Federal Reserve, having signalled higher rates at the end of 2018, changing tack and embarking on a new easing cycle. The European Central Bank unveiled a new programme of asset purchases, and also committed to ultra-low interest rates. Inflation has failed to lift off anywhere in this cycle, and there are few signs of inflationary pressure building.

The slowdown in economic growth had a negative impact on profits expectations, and whereas at the start of the year European equities were expected to see increases of around 8%, as of the time of writing this has been revised to less than 1% for 2019. Europe is not alone in seeing pressure on earnings, which are flat in the US, and falling in the UK, Japan, and Emerging Markets.

Against this background both of the Company's share classes saw NAV performance lag the market. In the Income class dividend stocks came under pressure despite the generally low interest rate environment. In the Growth class we always have an overweight position in value stocks. Unfortunately value stocks underperformed again as yield curves remained flat. This is because a flat yield curve is seen by bond markets as an indication that economic growth rates will be depressed, which is generally, not an environment that favours value stocks. The performance of value stocks has fallen since 2017, when they were achieving respectable levels of performance, but are now down to low levels not seen since the technology, media and telecoms bubble (dot.com bubble) at the turn of the millennium. We remain convinced that it is appropriate to have an exposure to value, since to our mind the market is excessively pessimistic about future economic expansion; however, in the short term it is not helping us.

Outlook

Economic growth everywhere is expected to be low in 2020, with little or no recovery from 2019 levels. The dampening impact on confidence is coming from the political arena, whether that is trade tensions as the US flexes its global muscles, or more locally with continued uncertainty over Brexit. In contrast, monetary policy is supportive, and investors are facing a challenge as they try to generate returns in a world of zero or negative interest rates. In this environment equities which yield substantially more than cash have their attractions, and we think that they should be a core source of growth for investors.

Stephen Macklow-Smith

Alexander Fitzalan Howard

Michael Barakos

Thomas Buckingham

Investment Managers

29th November 2019

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; 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 March 2019.

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 relating to the Company that would prevent its ability to continue in such operation existence for at least twelve months from the date of the approval of this half yearly financial report. 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 at 30th September 2019, 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

Josephine DixonChairman

29th November 2019

statement of comprehensive income

For the six months ended 30th September 2019



(Unaudited) (Unaudited) (Unaudited)

Six months ended Six months ended Six months ended

30th September 2019 30th September 2018 31st March 2019

Revenue Capital Total Revenue Capital Total Revenue Capital Total

Gains/(losses) on investments

and derivatives held at fair

value through profit or loss - 20,908 20,908 - 11,690 11,690 - (16,502) (16,502)

Net foreign currency

(losses)/gains - (113) (113) - (246) (246) - 1,266 1,266

Income from investments 12,352 - 12,352 13,314 - 13,314 17,864 - 17,864

Interest receivable and similar

income 170 - 170 37 - 37 120 - 120

Management fee (591) (1,129) (1,720) (613) (1,171) (1,784) (1,186) (2,265) (3,451)

Other administrative expenses (443) - (443) (461) - (461) (840) - (840)

Net return/(loss) before

Finance costs (220) (425) (645) (233) (447) (680) (441) (850) (1,291)

Net return/(loss) before

taxation 11,268 19,241 30,509 12,044 9,826 21,870 15,517 (18,351) (2,834)

Net return/(loss) after

Return/(loss) per share (note 3):

Growth share 6.97p 16.76p 23.73p 8.01p 7.81p 15.82p 10.68p (18.71)p (8.03)p

Income share 4.95p 7.21p 12.16p 5.01p 4.07p 9.08p 6.79p (4.71)p 2.08p

statement of changes in equity

For the six months ended 30th September 2019



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

statement of financial position

At 30th September 2019

statement of cash flows

For the six months ended 30th September 2019

Notes to the financial statements

For the six months ended 30th September 2019

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 March 2019 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, 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 and updated in October 2019.

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 2019.

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 2019.

 3. Return/(loss) per share

4. Dividend

The combined total of growth and income dividends paid and declared is identified in Statement of Changes in Equity above.

5. Net asset value per share

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.

29th November 2019

For further information, please contact:

Paul Winship

For and on behalf of

JPMorgan Funds Limited, Secretary

020 7742 4000

JPMORGAN FUNDS LIMITED

ENDS

A copy of the half year will be submitted to the National Storage Mechanism and will shortly be available for inspection at www.hemscott.com/nsm.do

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