Half-year Report

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN ELECT PLC

UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS

ENDED 28th FEBRUARY 2018

Legal Entity Identifier: 549300FIUYKKL39ILD07

Information disclosed in accordance with DTR 4.2.2

CHAIRMAN'S STATEMENT

Dear Shareholders,

I am very pleased to present my first statement to you since becoming Chairman of your Company in January this year. For the half year to 28th February, returns from the Managed Growth portfolio were positive, reflecting strong underlying fund performance. Returns from the Managed Income portfolio were marginally negative, as the UK market struggled to match performance internationally. The Managed Cash portfolio remained stable.

At the end of the half year period, markets weakened and volatility increased, as investors became more concerned about a range of issues, including US interest rates and the possibility of trade wars.

Managed Growth

The objective of the Managed Growth share class is long-term capital growth. The portfolio has delivered a total return on net assets of +4.6%, compared with the portfolio's benchmark which returned +0.7%. The share price total return was +3.8%. Details of the performance attribution analysis are set out in the Investment Managers' Report below.

For the half year ended 28th February 2018 the Board declared dividends of 5.70p per Managed Growth share compared to 5.45p for the half year ended 28th February 2017. Since this share class is a growth-oriented vehicle any income generated during the period is generally distributed in that period and investment decisions are not made with the objective of maintaining or growing income.

Managed Income

The Managed Income portfolio has delivered a total return on net assets of -1.6% just below the portfolio's benchmark which returned -0.9%. The share price total return was -0.6%. Details of the performance attribution analysis are set out in the Investment Managers' Report below.

The objective of the portfolio is to deliver a growing income return with the potential for long-term capital growth. It is also the Board's aim to increase the total dividends each year at least by inflation and to pay not less than 4.20p per share for the year ending 31st August 2018. In the absence of unforeseen circumstances the Board intends to declare the first three interim dividends for the year ending 31st August 2018 at 1.05p per share. The level of the fourth interim dividend will be determined by the Board towards the end of the Company's 2017/18 financial year and will depend on the level of dividends received and anticipated by the Company.

For the half year ended 28th February 2018 the Board declared dividends of 2.10p per Managed Income share (2017: 1.70p).

With effect from 1st March 2018 the benchmark index against which performance is measured was changed. The 15% weighting to the Bloomberg Barclays Capital Global Corporate Bond Index was removed and the portfolio is now measured simply against the FTSE All-Share Index (total return). This brings the Managed Income share class into line with the vast majority of investment trusts in the AIC UK Equity Income Sector and better reflects what we do in the underlying portfolio where we now have very little exposure to bonds.

The Board has also negotiated a £10 million, two year reducing credit facility with Scotiabank and this is now available to the Manager for gearing.

Managed Cash

The Managed Cash portfolio delivered a total return on net assets of +0.1%. The share price total return was-0.5%.

The portfolio's primary objective remains capital preservation through investment in high quality liquidity funds. The Managed Cash portfolio is invested in liquidity funds with AAA ratings as measured by Standard & Poor's, or an equivalent rating agency. At the end of August 2017 the Bank of England increased interest rates by a quarter of a percentage point. There have been no further increases since then.

The Board considers this class to be an asset allocation tool which continues to benefit shareholders of the Company's other share classes, offering the opportunity to switch into a safer share class in times of market volatility.

Investment Manager

We were so sad to report on the untimely death of Sarah Emly in December at the Annual General Meeting in January this year. Sarah was an important member of the JPMorgan team and was also a friend to many of those involved with JPMorgan Elect. She will be very much missed.

Katen Patel has now been appointed as a co-investment manager on the Managed Income share class portfolio. Katen joined JPMorgan Asset Management in 2013 and is co-investment manager for JPMorgan Smaller Companies Investment Trust plc, JPMorgan Mid Cap Investment Trust plc and JPMorgan UK Equity Income Fund.

Board Appointment

With my appointment as Chairman Karl Sternberg has agreed to assume the role of Senior Independent Director. This appointment is with immediate effect.

PRIIPs/KID

You may be aware that the Regulator has recently introduced new rules (Packaged Retail and Insurance-based Investment Products Regulation (the 'PRIIPs Regulation') that require the Investment Manager, who is deemed to be the manufacturer of the investment product, in our case this investment trust, to prepare a Key Information Document (KID) in respect of the Company. The Company is not responsible for the information contained in the KID and investors should note that the procedures for calculating the risks, costs and potential returns are prescribed by the law. The figures in the KID may not reflect the expected returns for the Company and anticipated performance returns cannot be guaranteed. The Board recommends that the KID should only be read in conjunction with other literature about the Company.

Outlook

Despite the recent volatility of markets, our Managers remain cautiously optimistic on equities. Robust global growth should support earnings and dividends are expected to continue to increase. However, interest rates are expected to rise in the US and UK, and markets are already highly rated.

Over the next six months, we will see some modest changes to the Managed Income portfolio, as it is adjusted to reflect the change in its benchmark and the availability of a loan facility. The Board hopes that this will deliver enhanced returns to shareholders in the longer term.

Alan Hodson

Chairman 25th April 2018

MANAGED GROWTH SHARE CLASS

INVESTMENT MANAGERS' REPORT

Performance Review

The Managed Growth portfolio outperformed its benchmark over the period, returning +4.6% versus the benchmark return of +0.7%. The return to shareholders was +3.8%.

During the six month period the portfolio has outperformed the benchmark. A combination of strong stock selection from our portfolio holdings and regional asset allocation drove this outperformance.

Over the period macroeconomic data confirmed that global growth is robust and synchronised. We have seen strong performance from underlying portfolio holdings as the majority of our largest holdings outperformed their own benchmarks over the six month period.

We made no meaningful change to the asset allocation over the first half of the financial year. The portfolio has maintained a broad overweight stance to Japan, Emerging Markets, Europe ex UK and the US to reflect our positive outlook on global growth. This has certainly helped as correlations across equity markets remained low, suggesting a meaningful benefit of maintaining this equity diversification across regions. Elsewhere, the UK is our least preferred region and the portfolio also benefited from being underweight in UK equities. While the UK has been impacted by an inflationary squeeze on real incomes, the economy has proved more resilient than expected.

At the end of February the investment trust sector average discount was 5.5% (excluding private equity, hedge funds and direct property), compared with 5.1% at the end of August 2018 (Source: Winterflood). We estimate that discount narrowing contributed to the portfolio return.

Outlook

The growth outlook for 2018 remains robust, but emergence of the risk of higher inflation, and moderation in the pace of growth and earnings revisions have led to a mild dip in confidence. We remain positive on equities albeit with a little more caution than previously.

Katy Thorneycroft

Investment Manager 25th April 2018

MANAGED INCOME SHARE CLASS

INVESTMENT MANAGERS' REPORT

Dividend Review

The UK stock market registered dividend growth of 10.5% in 2017, a material acceleration on the 2.6% growth delivered in 2016. The weakness in sterling in the aftermath of the EU referendum in June 2016 continued to have a positive impact on some of the more important sources of UK dividends: companies which declare their dividends in US dollars, notably the major oil and pharmaceutical stocks. It is important to note that, although the annual effect was positive, the pound strengthened over the course of 2017 to the extent that by the fourth quarter it was having a negative impact with dividend growth slowing to just 1.1%.

Thirteen sectors grew their dividends year on year in 2017 versus six that experienced a fall. Mining companies disproportionately contributed to overall growth, accounting for half of the total as they reinstated previously cancelled dividends. Glencore and Evraz recommenced payments whilst Rio Tinto increased its pay out meaningfully. Housebuilders also increased their dividends sharply as profit growth continued unabated. Sectors that registered year on year dividend declines included media, information technology and pharmaceuticals.

The outlook for dividend growth is heavily influenced by currency fluctuations which are difficult to predict. We note that at the time of writing sterling has continued to strengthen, reducing the positive translation effect we highlight above. Corporate profitability is also key and here we are cautiously optimistic as UK companies are benefiting from positive, albeit slower, economic growth in the UK whilst strong global growth is supportive of export led profit expansion.

Performance Review

The Managed Income portfolio underperformed its composite benchmark, delivering a total return on net assets of -1.6%, in comparison with the benchmark return of -0.9%.

Mezzanine finance provider and asset manager, Intermediate Capital Group, was one of the best performing stocks in the portfolio in the first half of the financial year. The stock rose 20% as assets under management grew strongly, cementing strong profit growth, which in turn is supporting 6 - 8% dividend growth. Evraz, an iron ore and coal miner, contributed positively to returns as its shares rose 27% as a result of rising commodity prices. WH Smith also performed strongly as earnings are increasingly being driven by sales growth in its outlets in train stations and airports, offsetting a gentle decline from its high street operations.

Value greetings card retailer, Card Factory, detracted from returns as the shares plummeted 37% due to weaker than expected sales and profit growth. Returns were also negatively impacted by GlaxoSmithKline. Its third quarter report was poorly received as the company indicated that margins in 2018 could be under pressure. Our holding in National Grid performed poorly due to a mix of regulatory risk, dollar weakness, rising interest rates and, above all, nationalisation risk in the UK.

Portfolio Review

There was no meaningful change to the asset allocation of the portfolio during the half year. The portfolio remained overweight equities relative to its composite benchmark.

We assess individual investment opportunities on whether earnings estimates are being revised up, whether the valuation is attractive and whether the balance sheet and forecast cash flows allow for dividend growth. As such portfolio construction is determined by bottom up stock selection with a focus on potential and sustainable dividend growth.

During the six month period we bought three new positions. The first was Just Group, a specialist retirement annuity provider with a competitive advantage deriving from ownership of detailed lifestyle and medical data. This allowed them to provide better prices for non-standard risks. Dividends are forecast to grow by 6.5% over the next 12 months. Secondly, we bought bus and train operator National Express following a positive trading update. The company reported strong performance from its overseas divisions and showed signs of a turnaround in its UK operations. Good free cash flow generation supports a dividend yield of 3.5% which is forecast to grow by 4.7%. Finally, educational material publisher Pearson was bought as it reversed a multi period run of negative earnings surprises by reporting stronger than expected organic growth in the third quarter leading to earnings upgrades.

We sold our position in Weir Group, a manufacturer of pumps for mining and oil companies. Their third quarter trading statement included a downgrade to guidance due to project phasing and increased costs. We also sold our holding in Card Factory. As noted above, the company reported weaker than expected sales growth and earnings forecasts fell. We reduced our position in house builder Berkeley Group which we believe is more exposed to 'Brexit' risks given its exposure to the premium London market. However, we remain comfortable with a continued position given the commitment by management to return excess cash to shareholders through dividends.

Outlook

The current bull market, which has been running since March 2009, is one of the longest on record. Moreover, the exceptional returns that equity investors have enjoyed recently have been delivered with very little volatility. For example, the MSCI World Index rose in every month last year, which is without precedent. This benign backdrop will not last. Global inflation and growth are both picking up with long bond yields rising in response. After almost a decade of continuous monetary stimulus, central banks are beginning to pull in their horns and starting to pass risk from themselves to investors. Short-term interest rates are starting to nudge up in the UK and even more so in the US. Moreover, President Trump has announced tariffs and other measures designed to punish China, who has promised to retaliate. This will cause some degree of volatility in equity prices, which investors should be prepared for. Moreover, the continuing Brexit negotiations and a politically fragile government at home are both likely to magnify the volatility in UK equities in the year ahead. We aim, however, to use such volatility to our advantage by picking up more of the shares we like at lower prices. The yield and growth in dividends on UK equities continue to appeal.

The change in the portfolio's benchmark from a composite of bonds and equities to just equities (FTSE All-Share Index) allows us the opportunity to capitalise on these opportunities

John Baker

Katen Patel

Investment Managers 25th April 2018

MANAGED CASH SHARE CLASS

INVESTMENT MANAGER'S REPORT

It was once more a period of low returns for the Managed Cash portfolio. The Bank of England's Monetary Policy Committee (MPC) voted to maintain interest rates at 0.5% and keep the Asset Purchasing Program at £445billion. The Bank of England (BOE) upgraded its forecast for the UK economy marginally in its latest set of projections. It now expects annual GDP growth to be steady at 1.8%. The upgrade was largely due to the strength in activity elsewhere in the world. It was noted that global growth is now at the strongest pace in seven years and this is supporting UK activity. The two interest rate increases by the end of 2020 that the market had priced in prior to the November inflation report were now not deemed by the MPC as likely to be sufficient to bring inflation back to target. Policy will now need to be tightened somewhat earlier and by a somewhat greater extent than had been expected in November.

The Managed Cash portfolio returned 0.1% for the period, as interest rates remain low. The portfolio continues to retain its broad diversification across a range of the UK's leading AAA-rated sterling liquidity funds, each selected to provide a high level of capital security for shareholders.

If events unfold as the MPC currently expects, with growth of 0.4% in the first quarter, then we should expect a 25bps increase in interest rates in May and another 25bps before the end of the year. However, the Governor of the BoE has been keen to temper expectations, reinforcing the message that the peak of rates is still expected to be well below the 5.0% we had been used to before the crisis.

Katy Thorneycroft

Investment Manager 25th April 2018

INTERIM MANAGEMENT REPORT

The Company is required to make the following disclosures in its half-yearly financial report.

Principal Risks and Uncertainties

The principal risks and uncertainties faced by the Company fall into the following broad categories: investment strategy; market; accounting, legal and regulatory; corporate governance and shareholder relations; operational, cyber crime and financial. Information on each of these areas is given in the Business Review within the 2017 Annual Report and Accounts.

Related Party Transactions

During the half year to 28th February 2018, no new agreements were entered into with related parties 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 operational 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 reasonable evidence to adopt the going concern basis in preparing the financial statements.

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 28th February 2018, as required by the UK Listing Authority Disclosure Guidance and Transparency Rules 4.2.4R; and

(ii) the interim management report includes a fair review of the information required by 4.2.7R (important events that have occurred since inception, their impact on these financial statements and a description of the principal risks facing the Company) and 4.2.8R (related party transactions since inception that have materially affected the financial position or performance of the Company) of the UK Listing Authority Disclosure Guidance 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 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

Alan Hodson

Chairman 25th April 2018

STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 28TH FEBRUARY 2018

STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 28TH FEBRUARY 2018

1 This reserve forms the distributable reserve of the Company and may be used to fund distribution of profits to investors via dividend payments.

 STATEMENT OF FINANCIAL POSITION

AT 28TH FEBRUARY 2018

STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 28TH FEBRUARY 2018

NOTES TO THE FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 28TH FEBRUARY 2018

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 August 2017 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 includes 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 are prepared 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 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.

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 28th February 2018.

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 August 2017.

3. Return per share

 1 All the dividends paid and declared in the period have been funded from the Revenue Reserve.

2 In accordance with the accounting policy of the Company, these dividends will be reflected in the financial statements of the following period.

5. Net asset value per share

The net asset values per share are calculated as follows:

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

ENDS

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

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